In the long run, if the prices of goods and services paid by consumers increase the long-run aggregate:
A. supply will decrease.
B. supply will stay the same.
C. supply will increase.
D. demand will increase.
Answer: B
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When the balance of trade is in balance, we know with certainty that
A) the value of all debit transactions equals the value of all credit transactions. B) the value of exports of goods equals the value of imports of goods. C) the value of capital exports equals the value of capital imports. D) the value of exports of goods and services equals the value of imports of goods and services.
Utility is maximized for the consumption of two goods when: a. the price of the first good equals the price of the second good
b. the marginal utility per dollar spent is equal for both goods consumed. c. the quantity consumed of the first good equals the quantity consumed of the second good. d. the total utility of the first good equals the total utility of the second good.
According to the convergence hypothesis, countries with rapid GDP growth
A. are heavily industrialized. B. are market-based economies. C. are likely to be imitating technologies, rather than innovating technologies. D. higher levels of natural resource endowments.
For a given nominal exchange rate and foreign price level, an increase in the domestic price level ________ the real exchange rate.
A. decreases B. increases C. offsets any change in D. may either increase or decrease